Income Tax

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sankalp Dehury (Querist)
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12 May 2011 Dear Sir,

I need to make the Provision for Income Tax on 31st march 2011.

I have paid the advance tax less than that required. so Now I will make the tax provision only for tax or tax Plus 234C interest.

Kindly anyone advice me.

Sankalp

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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12 May 2011 If actually know that you have paid short adv tax... then better to calculate the difference today itself & pay it off the difference. This way you can avoid the interest for further months.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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12 May 2011 Regarding provision of income tax : It should be made as per calculations till 31st march.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 May 2011 Provision will be made for Total Tax Payable including interest. And will be reflected in Liabilities Side under Provisions.

Advance Tax Paid and TDS Receivable will be shown in Assets side under Loans & Advances.

When the assessment is completed Provision will be adjusted against the Advance Tax, TDS Receivable and Self assessment Tax Paid.

Say Total Tax Liability is Rs 100 and you have paid Rs 50 as advance tax still you will make prov for Rs 100.

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